Oil prices fell on Monday amid attacks on the oil industry in the Persian Gulf and US President Donald Trump's call for global efforts to ensure the security of the Strait of Hormuz, UNN reports with reference to Reuters.
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Brent crude futures fell 92 cents to $102.22 a barrel by 12:48 GMT (14:48 Kyiv time), while US West Texas Intermediate crude fell $3.45, or 3.5%, to $95.26.
Both contracts rose more than 40% this month, reaching their highest level since 2022, after US-Israeli attacks on Iran prompted Tehran to halt shipping through the Strait of Hormuz, a vital waterway for a fifth of the world's oil and LNG supplies.
Daily oil production in the United Arab Emirates has more than halved due to the conflict with Iran and the de facto closure of the Strait of Hormuz, forcing state oil company ADNOC to implement large-scale production shutdowns, two sources told Reuters.
Fire breaks out at UAE's Fujairah oil hub after drone attack16.03.26, 14:15
ADNOC suspended oil shipment operations at Fujairah port on Monday after a drone attack caused fires at a key export terminal, a source familiar with the situation said.
However, some other shipments at the port resumed, with one of them reporting that two of the three single-point moorings where vessels dock were operational, according to two other sources.
Fujairah Port in UAE resumes oil transshipment after drone attack15.03.26, 08:30
Fujairah, located outside the Strait of Hormuz, is the main market for the UAE's flagship Murban crude - about 1 million barrels per day, accounting for approximately 1% of global demand.
US President Donald Trump is in talks with European allies and many other countries to open the Strait of Hormuz, White House press secretary Caroline Leavitt said in an interview with Fox News on Monday.
The British Prime Minister said on Monday that Britain would not be drawn into a wider conflict but would work with allies on a "viable" plan to reopen the Strait of Hormuz.
US Treasury Secretary Scott Bessent said in an interview with CNBC on Monday that the Treasury Department had not intervened in oil markets, and any US action to mitigate the effects of rising prices would depend on the duration of the conflict.
The war in the Middle East is leading to the largest oil supply disruption in history, the International Energy Agency (IEA) said on Thursday, as major oil producers such as Saudi Arabia, Iraq and the UAE cut production.
PVM analyst Tamas Varga said investors understand that the consequences of a protracted conflict will be severe, especially given the steady depletion of stocks, and already a significant portion of the damage to production, exports and refining has been done in just two weeks of disruptions in the Strait of Hormuz.
Over the weekend, Trump threatened further strikes on the Iranian island of Kharg, through which about 90% of Iranian exports pass, after striking military targets and provoking further retaliation from Tehran.
Iran reiterates retaliatory threat after US strikes on Kharg Island14.03.26, 09:25
The US is in contact with Iran, Trump said, although he doubted Tehran was ready for serious negotiations to end the conflict. Trump said last night on Air Force One regarding Iran: "We are talking to them. But I don't think they are ready."
However, as Sky News notes, Iranian Foreign Minister Abbas Araghchi denies any contact with the US regarding the conflict. In an interview with the Iranian news agency SNN, Abbas Araghchi said that there had been no exchange of messages with Washington regarding a potential peace agreement. Iran has not asked for a ceasefire, and the conflict must end "in a way that guarantees it will not happen again," Araghchi said. Regarding the Strait of Hormuz, he said that the waterway is closed only to "enemies" and those who support their aggression. Shortly after these comments, a spokesman for the Qatari Foreign Ministry said that they were unaware of any official mediation between the US and Iran.
On Sunday, the International Energy Agency (IEA) said that more than 400 million barrels of oil reserves, a record reduction aimed at combating soaring prices caused by the war in the Middle East, would soon begin to enter the market.
Stocks from Asia and Oceania will be released immediately, and from Europe and America by the end of March, the agency said.
The International Energy Agency, as Sky News points out, says it is closely coordinating with all member countries to ensure their oil reaches markets in a timely manner. Agency head Fatih Birol says that despite this huge release by IEA decision, it still has plenty of reserves left. He also said that the agency could do more "if needed" if the war continues.
"As the conflict enters its third week, the lack of a clear resolution is increasingly worrying global markets about an uncontrolled escalatory spiral," said Meyerson of SEB.
However, US Energy Secretary Chris Wright said on Sunday that he expects the war to end within "the next few weeks," after which oil supplies will recover and energy prices will fall.
Iraq announces new oil export route amid Strait of Hormuz closure16.03.26, 17:07